Driven by the massive artificial intelligence boom, the market valuation of U.S chipmaker Nvidia, neared one trillion dollars on Thursday after the company blew past quarterly earnings expectations.
The company's sales forecast also added to the surge. Nvidia said its sales in the three months ending in July would be around $11 billion. This is far above the $7 billion that the street was expecting. The company also said it is boosting supply to meet surging demand for its artificial-intelligence chips, which are used to power ChatGPT and many similar services.
The world's most valuable chipmaker saw its shares surge as much as 27 percent, putting it on course for a record performance with a market cap above $900 billion. This also led to a surge in global AI related stocks.
About Nvidia
Founded thirty years ago by American-Taiwanese engineer Jen-Hsun "Jensen" Huang, this little-known company was initially a star in the video game world.
The Silicon Valley-based company has long been known for graphics processing units (GPUs), which ramp up image quality and vanquish response lag time for gamers.
If Nvidia hits the one-trillion mark, it will join a club of only five companies -- all US tech giants except Saudi Aramco, the oil behemoth.
Before the major move on Thursday, shares in Nvidia had already doubled in 2023 amid the frenzy over AI chatbots such as OpenAI's ChatGPT and Google's Bard.